Poultry industry employs 14m, earning N46,000 per-capita income annually

Industry worth

Though the commercial poultry industry in Nigeria is growing, with more industrialisation, the incomes of about 14 million people employed in the sub-sector directly and indirectly with a per capita income of N46,000 annually would increase.

Based on the last estimate of the national office of the Poultry Association of Nigeria (PAN) given by Onallo Akpa, director-general of the association, the current worth of the poultry industry in Nigeria is about $3.2 billion (N640bn with a dollar-to-naira rate of N200).

According to Olufemi Faniyi, South West president of PAN, about 14 million people are directly and indirectly employed in the sub-sector, which entails feed milling and other indirect activities like warehousing and haulage. Apart from eggs and poultry meat production, commercial poultry industry also includes equipment, hatcheries, veterinary products, services, and so on.

Income levels

Computing the total worth of the industry with the number of people engaged in the sector in a period of one year shows that per capita income is about N46,000 annually, less than N4,000 monthly. About 80 percent of those employed in this industry however have other sources of income outside the industry. But industry watchers foresee a higher income level if wastages, especially of raw eggs, are reduced through industrialisation such as production of powdered eggs, which many food manufacturing companies even in Nigeria utlise but import because there is currently no commercial production of powdered eggs in Nigeria.

Egg glut

A major challenge, which the poultry industry faces, apart from high cost of input, infrastructure challenges and competition from cheap imported poultry meat smuggled into the country, is egg glut.

Many industry watchers and producers of poultry products have at various times raised concerns about egg glut. Sunday Adeyooye of Sun Ados Farms says, “… there is the issue of terrorism which led to a decline in egg demand from the North because most of the eggs produced in the South West are consumed in the north.” But apart from this recent issue of terrorism, egg glut which is usually seasonal, has been a major complaint by players in the industry for several years. One of the solutions which industry watchers expect would resolve the problem of egg glut is more industrialisation in the industry, particularly the production of powdered eggs for the food manufacturing companies.

Powdered eggs

Egg white powder is dried egg (pure albumen). It can be reconstituted by mixing the powder with water. The reconstituted powder whips like fresh egg white and, because it is pasteurised, can be used safely without cooking or baking it. The powder is blended with water to produce liquid eggs, which can then be used just like fresh eggs.

According to USA Emergency supply, powdered or dehydrated eggs are added with the dry ingredients when baking and act exactly like the “real thing” would act in the recipe. Unlike raw eggs, they do not perish so easily and can last for five to 10 years if stored in the right environment. As a result, they are normally cheaper than raw eggs. The USA agency says powdered eggs are made in a spray dryer much in the same way that powdered milk is made. The finished product is a free flowing powder that reconstitutes into a product similar to fresh whipped eggs.

Potential investment

Currently, powdered eggs are not manufactured in Nigeria even though large quantities of raw eggs that can provide the raw materials are produced in large quantities. Some farmers and agribusiness investors have indicated interest in manufacturing powdered eggs, but are uncertain of the viability of the project considering the infrastructural challenges and huge capital outlay. Some farmers even maintain that such a large scale project is the responsibility of governments to undertake. Various levels of governments in recent years however expect businesses in the agricultural sector to be private sector driven, a business and not a development project. This is a firm belief of Akinwunmi Adesina, current minister of agriculture and rural development which has been widely accepted by the various levels of governments.

Industry growth

The poultry industry is however growing in spite of complaints of egg gluts by farmers who claim they often have large stock of eggs without buyers. Computations based on poultry players’ estimates show that between 2011 and 2014, number of eggs produced increased by over 300,000 eggs estimated at N1 billion, from 9.7 billion eggs produced annually to over 10 billion eggs yearly.

Raw eggs

This growth has been driven by very heavy demand, especially by fast food companies/confectionery firms. Noteworthy is the fact that very large numbers of confectionery entrepreneurs, mostly young graduates and undergraduates have emerged and heavily utilise eggs in preparation of the confectioneries. Cakes and other confectioneries needing eggs in their preparations have always been consumed at events but in recent years, cakes have become more and more fashionable for use at virtually every occasion. Some industry watchers however believe that to experience more meaningful growth in the industry, further industrialisation of eggs for food purposes such as conversion to powder is one of the best ways forward.

Increased production

Kola Oyedeji of Satin Farms, a poultry production outfit, attests to the fact that there is an increase in the usage of eggs in the confectionery industry. He also attests to the fact that apart from politicians, many civil servants, working class professionals, graduates and undergraduates have also gone into poultry production in recent times resulting in larger egg production volumes.

Way forward

Oyedeji however stresses that egg glut is a reality that farmers still face and in some strata of the Nigerian society, egg is still considered a luxury and unaffordable. Therefore, farmers need off-takers that can buy their raw eggs in very large quantities and convert to powdered eggs for sale to food manufacturers.

OLUYINKA ALAWODE